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What Will I Pay in Taxes When I Sell My Business in Australia?
Understanding Tax Implications Before You Sell
When selling a business in Australia, it’s essential to understand the tax consequences — because how the deal is structured can significantly impact what you keep after the sale. With proper planning, you may be able to reduce or even eliminate some of the tax you owe.
The Main Tax You May Pay: Capital Gains Tax (CGT)
In Australia, selling your business or business assets may trigger Capital Gains Tax (CGT), which is part of your income tax — not a separate tax. CGT applies to the profit you make on the sale.
But here’s the good news: many small business owners qualify for generous CGT concessions, which can drastically reduce or eliminate your tax bill.
Small Business CGT Concessions (If You’re Eligible)
The Australian Tax Office (ATO) offers four key CGT concessions:
15-Year Exemption
If you’ve owned the business for 15+ years and you're over 55 and retiring, you may pay no CGT at all.50% Active Asset Reduction
Reduces the capital gain on active business assets by 50%.Retirement Exemption
You can contribute up to $500,000 of the gain tax-free into your superannuation.Rollover Relief
Allows you to defer paying CGT if you buy a replacement business or asset.
⚠️ Each concession has specific criteria. It’s essential to get advice to confirm your eligibility from a qualified Tax Practitioner
Other Tax Considerations
- Goods and Services Tax (GST): Most business sales can be structured as a “going concern”, which may be GST-free — if certain conditions are met.
- Depreciation Recapture / Income Tax: Proceeds from some assets (e.g., equipment, stock) may be taxed as income.
- Company Structure: If you're selling shares vs. assets, or if your business is run through a company or trust, the tax treatment will vary.
Plan Ahead for a Smarter Exit
Tax planning before you go to market can help you:
Maximise your concessions
Minimise or defer tax
Ensure you comply with ATO reporting
Speak to a Business Advisor or Tax Professional
Every business and owner’s situation is different. The smartest move is to get tailored advice before signing anything.
all advice here is general in nature and you should seek professional advice from a qualified accountant before selling your business.
A quick conversation could lead to big results. Whether you're planning, growing, or looking to sell — we can help.
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